Iran War Drives Up Europe’s Energy Bill
European Union countries have spent more than 100 billion euros, or $113.5 billion, in additional energy imports since the Iran war began. The extra expense has not delivered more oil or gas, according to EU energy commissioner Dan Jørgensen. Instead, the disruption has pushed fuel prices sharply higher and increased pressure on governments as winter approaches.
The closure of the Strait of Hormuz has intensified the crisis because roughly one-fifth of the world’s traded oil passed through the waterway during peacetime. Consumers in some European countries are paying nearly 50% more at the pump, with prices equivalent to more than $11 per gallon. Energy ministers from the 27-member bloc gathered in Dublin to discuss how to reduce this exposure.
Diesel Dependence Exposes New Risks
Europe remains especially vulnerable because it imports a large share of its diesel as the colder season begins. About half of the bloc’s diesel supply now comes directly from the United States. This reliance grew after the EU ended its historic dependence on Russian energy following Russia’s full-scale invasion of Ukraine in 2022.
Political calls in several key U.S. states for a diesel export ban have created additional uncertainty. Supporters want to protect domestic supply before the midterm elections, but the proposal could affect President Donald Trump’s 2025 agreement to sell $750 billion in energy to the EU. Irish energy minister Darragh O’Brien said a ban was unlikely because it would damage both economies, although he warned that Europe must still prepare for the worst.
EU Ministers Push for Homegrown Power
EU officials want to accelerate the move from imported fossil fuels to electricity while expanding the bloc’s electrical infrastructure. Jørgensen urged U.S. authorities to reject an export ban and argued that Europe must reduce its dependence on foreign energy supplies that can be disrupted by wars and political decisions. His proposed direction favors locally produced electricity from greener sources over imported, expensive, and polluting fuels.
Finland offers one example of greater energy independence. Environment minister Sari Multala said nuclear reactors, turbines, peat bogs, and hydropower dams provide 95% of the country’s electricity and help maintain reasonable prices. As rising energy costs strain consumers, EU leaders face the immediate challenge of securing supplies for winter and the longer-term task of building a more resilient energy system.
References
McNeil, S. (2026, September 29). EU nations seek energy alternatives after spending over $113 billion extra since Iran war began. AP News. https://apnews.com/article/europe-ireland-energy-diesel-iran-war-2bba50d8a9f53a341f85629ba0960988